The state of Nevada has a
certain mystique to it. When people think of Nevada
they usually conjure up an image of casinos, and of the old idea of what
happens in Nevada stays in Nevada.
Well, in regards to some business matters, this saying is more true than many
realize.
One of the biggest advantages of incorporating a business in Nevada
concerns the issue of privacy. In most states, when you incorporate a business,
the names of those incorporating the business must be clearly listed. This
incorporation information then becomes a matter of public record. In fact, most
states now have their incorporation records online for people to easily search
their contents.
In Nevada, however, the rules
are different. The person who is incorporating the business does not have to be
listed at all. Instead, the incorporator can register the business entity under
the name of a nominee, or someone who agrees to be listed on the incorporation
paperwork of a business.
Now, this may seem like a lot of cloak and dagger drama, but the advantages
to this can be many. For instance, for a person who does not want snooping
relatives to know that he or she is involved in a successful business, this can
be the best alternative. Or, for the husband who does not want his ex-wife to
know about business dealings, Nevada
may be the place to incorporate.
Of course, privacy does come with a price. Most businesses that incorporate
using a nominee pay a company for that service. Most companies that act as
nominees charge a few hundred dollars a year. However, if privacy is what you
need, a few hundred dollars a year can be well worth the price.
Another great advantage of incorporating a business in Nevada
is the tax structure of the state. For any business that is successful, paying
income taxes on the profits becomes a very big deal. In Nevada,
on the other hand, it is not a big deal—in fact, it is a non-issue. Nevada
has not state income taxes. So, any money made in the state will not be taxed.
That is more money in the business owner’s pocket.
Now, incorporating in Nevada
if you do not live in Nevada will
require some additional fees. Every state requires that you list a registered
agent on the incorporation paperwork. The registered agent is someone in the
state that can receive official paperwork, such as from the state or other
sources. If you do not live in the state, you will typically have to hire a
company that actually acts as a registered agent. These companies usually
charge a few hundred dollars a year. The fee can vary, so it is a good idea to
shop around.